Submission on the Investment Protocol to the Hong Kong-New Zealand Closer Economic Partnership Agreement

September 2011

The CTU policy approach on international trade and investment matters is to identify possible risks to the New Zealand economy and local businesses and other interests, whilst recognising the perceived advantages that some sectors may accrue from enhanced access to markets.  The CTU has general concerns about the possible negative impacts of a neo liberal approach to free trade which can promote unrestricted access by multinational corporations to land, resources, workers, culture, plant life, indigenous intellectual property rights, and so on without protections for the people of that country.  These concerns are both for direct impacts and for unintended consequences.

For the CTU, any analysis of the relative merits of an international commercial agreement must be based on empirically sound research, properly conducted net benefit analysis, and include consideration of:

• employment effects in New Zealand;
• adherence to core labour standards in the partner country;
• the contribution any proposed agreement will make to sustainable economic development in NZ;
• the impact on public and social services;
• the extent to which the agreement is based on principles which will advance equitable commercial relations between countries; and
• the genuine application of the Treaty of Waitangi relationship.

The CTU continues to be highly concerned at the process followed in international trade and investment negotiations, particularly at the lack of openness including secrecy surrounding the draft text of agreements, which limits consultation on, and input into, the trade agreement documents.